EX-99.2 3 dex992.htm SUPPLEMENTAL FINANCIAL INFORMATION Supplemental Financial Information

Exhibit 99.2

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 3 months ending September 30, 2007 and 2006

 

     3rd Quarter        

(in thousands, except per share data)

   2007     2006     Change  

Operating Revenues

      

Oil and gas operations

   $ 208,423     $ 171,516     $ 36,907  

Natural gas distribution

     67,599       71,195       (3,596 )
                        

Total operating revenues

     276,022       242,711       33,311  
                        

Operating Expenses

      

Cost of gas

     31,088       32,311       (1,223 )

Operations & maintenance

     84,857       78,836       6,021  

Depreciation, depletion and amortization

     41,457       35,676       5,781  

Taxes, other than income taxes

     18,988       19,338       (350 )

Accretion expense

     1,000       881       119  
                        

Total operating expenses

     177,390       167,042       10,348  
                        

Operating Income

     98,632       75,669       22,963  
                        

Other Income (Expense)

      

Interest expense

     (11,418 )     (12,267 )     849  

Other income

     885       448       437  

Other expense

     (244 )     (207 )     (37 )
                        

Total other expense

     (10,777 )     (12,026 )     1,249  
                        

Income from Continuing Operations Before Income Taxes

     87,855       63,643       24,212  

Income tax expense

     29,841       22,346       7,495  
                        

Income from Continuing Operations

     58,014       41,297       16,717  
                        

Discontinued Operations, Net of Taxes

      

Income from discontinued operations

     2       2       —    

Gain on disposal of discontinued operations

     18       53       (35 )
                        

Income from Discontinued Operations

     20       55       (35 )
                        

Net Income

   $ 58,034     $ 41,352     $ 16,682  
                        

Diluted Earnings Per Average Common Share

      

Continuing operations

   $ 0.80     $ 0.56     $ 0.24  

Discontinued operations

     —         —         —    
                        

Net Income

   $ 0.80     $ 0.56     $ 0.24  
                        

Basic Earnings Per Average Common Share

      

Continuing operations

   $ 0.81     $ 0.57     $ 0.24  

Discontinued operations

     —         —         —    
                        

Net Income

   $ 0.81     $ 0.57     $ 0.24  
                        

Diluted Avg. Common Shares Outstanding

     72,275       73,191       (916 )
                        

Basic Avg. Common Shares Outstanding

     71,623       72,228       (605 )
                        

Dividends Per Common Share

   $ 0.115     $ 0.11     $ 0.005  
                        

 

11


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 9 months ending September 30, 2007 and 2006

 

     Year-to-date        

(in thousands, except per share data)

   2007     2006     Change  

Operating Revenues

      

Oil and gas operations

   $ 605,812     $ 510,213     $ 95,599  

Natural gas distribution

     477,793       503,014       (25,221 )
                        

Total operating revenues

     1,083,605       1,013,227       70,378  
                        

Operating Expenses

      

Cost of gas

     252,584       284,192       (31,608 )

Operations & maintenance

     251,011       231,720       19,291  

Depreciation, depletion and amortization

     118,184       104,472       13,712  

Taxes, other than income taxes

     71,170       73,450       (2,280 )

Accretion expense

     2,921       2,691       230  
                        

Total operating expenses

     695,870       696,525       (655 )
                        

Operating Income

     387,735       316,702       71,033  
                        

Other Income (Expense)

      

Interest expense

     (35,655 )     (37,810 )     2,155  

Other income

     2,396       1,410       986  

Other expense

     (626 )     (708 )     82  
                        

Total other expense

     (33,885 )     (37,108 )     3,223  
                        

Income from Continuing Operations Before Income Taxes

     353,850       279,594       74,256  

Income tax expense

     124,052       101,194       22,858  
                        

Income from Continuing Operations

     229,798       178,400       51,398  
                        

Discontinued Operations, Net of Taxes

      

Income (loss) from discontinued operations

     3       (6 )     9  

Gain on disposal of discontinued operations

     18       53       (35 )
                        

Income from Discontinued Operations

     21       47       (26 )
                        

Net Income

   $ 229,819     $ 178,447     $ 51,372  
                        

Diluted Earnings Per Average Common Share

      

Continuing operations

   $ 3.18     $ 2.42     $ 0.76  

Discontinued operations

     —         —         —    
                        

Net Income

   $ 3.18     $ 2.42     $ 0.76  
                        

Basic Earnings Per Average Common Share

      

Continuing operations

   $ 3.21     $ 2.45     $ 0.76  

Discontinued operations

     —         —         —    
                        

Net Income

   $ 3.21     $ 2.45     $ 0.76  
                        

Diluted Avg. Common Shares Outstanding

     72,173       73,671       (1,498 )
                        

Basic Avg. Common Shares Outstanding

     71,566       72,839       (1,273 )
                        

Dividends Per Common Share

   $ 0.345     $ 0.33     $ 0.015  
                        

 

12


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 12 months ending September 30, 2007 and 2006

 

     Trailing 12 Months        

(in thousands, except per share data)

   2007     2006     Change  

Operating Revenues

      

Oil and gas operations

   $ 826,141     $ 674,340     $ 151,801  

Natural gas distribution

     638,223       673,968       (35,745 )
                        

Total operating revenues

     1,464,364       1,348,308       116,056  
                        

Operating Expenses

      

Cost of gas

     341,489       385,149       (43,660 )

Operations & maintenance

     321,448       305,320       16,128  

Depreciation, depletion and amortization

     155,798       137,422       18,376  

Taxes, other than income taxes

     93,447       101,566       (8,119 )

Accretion expense

     3,849       3,373       476  
                        

Total operating expenses

     916,031       932,830       (16,799 )
                        

Operating Income

     548,333       415,478       132,855  
                        

Other Income (Expense)

      

Interest expense

     (46,497 )     (49,816 )     3,319  

Other income

     1,859       1,879       (20 )

Other expense

     (886 )     (780 )     (106 )
                        

Total other expense

     (45,524 )     (48,717 )     3,193  
                        

Income from Continuing Operations Before Income Taxes

     502,809       366,761       136,048  

Income tax expense

     177,888       131,066       46,822  
                        

Income from Continuing Operations

     324,921       235,695       89,226  
                        

Discontinued Operations, Net of Taxes

      

Income (loss) from discontinued operations

     3       (10 )     13  

Gain on disposal of discontinued operations

     18       65       (47 )
                        

Income from Discontinued Operations

     21       55       (34 )
                        

Net Income

   $ 324,942     $ 235,750     $ 89,192  
                        

Diluted Earnings Per Average Common Share

      

Continuing operations

   $ 4.50     $ 3.20     $ 1.30  

Discontinued operations

     —         —         —    
                        

Net Income

   $ 4.50     $ 3.20     $ 1.30  
                        

Basic Earnings Per Average Common Share

      

Continuing operations

   $ 4.54     $ 3.23     $ 1.31  

Discontinued operations

     —         —         —    
                        

Net Income

   $ 4.54     $ 3.23     $ 1.31  
                        

Diluted Avg. Common Shares Outstanding

     72,170       73,744       (1,574 )
                        

Basic Avg. Common Shares Outstanding

     71,598       72,934       (1,336 )
                        

Dividends Per Common Share

   $ 0.455     $ 0.43     $ 0.025  
                        

 

13


SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending September 30, 2007 and 2006

 

     3rd Quarter        

(in thousands, except sales price data)

   2007     2006     Change  

Oil and Gas Operations

      

Operating revenues

      

Natural gas

   $ 123,499     $ 108,795     $ 14,704  

Oil

     66,689       46,529       20,160  

Natural gas liquids

     17,486       14,668       2,818  

Other

     749       1,524       (775 )
                        

Total

   $ 208,423     $ 171,516     $ 36,907  
                        

Production volumes from continuing operations

      

Natural gas (MMcf)

     16,495       16,004       491  

Oil (MBbl)

     1,025       905       120  

Natural gas liquids (MMgal)

     19.6       20.4       (0.8 )

Production volumes from continuing ops. (MMcfe)

     25,445       24,340       1,105  

Total production volumes (MMcfe)

     25,445       24,340       1,105  

Revenue per unit of production including effects of all derivative instruments

      

Natural gas (Mcf)

   $ 7.49     $ 6.80     $ 0.69  

Oil (barrel)

   $ 65.06     $ 51.43     $ 13.63  

Natural gas liquids (gallon)

   $ 0.89     $ 0.72     $ 0.17  

Other data from continuing operations

      

Lease operating expense (LOE)

      

LOE and other

   $ 38,706     $ 35,305     $ 3,401  

Production taxes

     12,968       12,602       366  
                        

Total

   $ 51,674     $ 47,907     $ 3,767  
                        

Depreciation, depletion and amortization

   $ 29,610     $ 24,475     $ 5,135  

Capital expenditures

   $ 94,274     $ 61,049     $ 33,225  

Exploration expenditures

   $ 1,396     $ 1,986     $ (590 )

Operating income

   $ 112,899     $ 85,239     $ 27,660  

Natural Gas Distribution

      

Operating revenues

      

Residential

   $ 35,685     $ 36,635     $ (950 )

Commercial and industrial

     21,384       22,300       (916 )

Transportation

     10,575       10,115       460  

Other

     (45 )     2,145       (2,190 )
                        

Total

   $ 67,599     $ 71,195     $ (3,596 )
                        

Gas delivery volumes (MMcf)

      

Residential

     1,537       1,601       (64 )

Commercial and industrial

     1,520       1,534       (14 )

Transportation

     12,779       12,999       (220 )
                        

Total

     15,836       16,134       (298 )
                        

Other data

      

Depreciation and amortization

   $ 11,847     $ 11,201     $ 646  

Capital expenditures

   $ 14,023     $ 18,512     $ (4,489 )

Operating (loss)

   $ (13,673 )   $ (8,921 )   $ (4,752 )

 

14


SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 9 months ending September 30, 2007 and 2006

 

     Year-to-date       

(in thousands, except sales price data)

   2007    2006    Change  

Oil and Gas Operations

        

Operating revenues

        

Natural gas

   $ 371,436    $ 331,073    $ 40,363  

Oil

     181,388      136,146      45,242  

Natural gas liquids

     49,076      38,152      10,924  

Other

     3,912      4,842      (930 )
                      

Total

   $ 605,812    $ 510,213    $ 95,599  
                      

Production volumes from continuing operations

        

Natural gas (MMcf)

     47,732      47,056      676  

Oil (MBbl)

     2,898      2,736      162  

Natural gas liquids (MMgal)

     57.6      57.1      0.5  

Production volumes from continuing ops. (MMcfe)

     73,350      71,625      1,725  

Total production volumes (MMcfe)

     73,349      71,624      1,725  

Revenue per unit of production including effects of all derivative instruments

        

Natural gas (Mcf)

   $ 7.78    $ 7.04    $ 0.74  

Oil (barrel)

   $ 62.58    $ 49.75    $ 12.83  

Natural gas liquids (gallon)

   $ 0.85    $ 0.67    $ 0.18  

Other data from continuing operations

        

Lease operating expense (LOE)

        

LOE and other

   $ 113,236    $ 100,789    $ 12,447  

Production taxes

     38,568      38,454      114  
                      

Total

   $ 151,804    $ 139,243    $ 12,561  
                      

Depreciation, depletion and amortization

   $ 83,083    $ 71,592    $ 11,491  

Capital expenditures

   $ 254,795    $ 156,606    $ 98,189  

Exploration expenditures

   $ 1,671    $ 3,512    $ (1,841 )

Operating income

   $ 329,672    $ 260,916    $ 68,756  

Natural Gas Distribution

        

Operating revenues

        

Residential

   $ 306,312    $ 322,635    $ (16,323 )

Commercial and industrial

     130,279      139,713      (9,434 )

Transportation

     36,509      33,111      3,398  

Other

     4,693      7,555      (2,862 )
                      

Total

   $ 477,793    $ 503,014    $ (25,221 )
                      

Gas delivery volumes (MMcf)

        

Residential

     16,303      16,581      (278 )

Commercial and industrial

     8,373      8,559      (186 )

Transportation

     38,396      37,947      449  
                      

Total

     63,072      63,087      (15 )
                      

Other data

        

Depreciation and amortization

   $ 35,101    $ 32,880    $ 2,221  

Capital expenditures

   $ 45,596    $ 58,947    $ (13,351 )

Operating income

   $ 59,734    $ 57,517    $ 2,217  

 

15


SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending September 30, 2007 and 2006

 

     Trailing 12 Months       

(in thousands, except sales price data)

   2007    2006    Change  

Oil and Gas Operations

        

Operating revenues

        

Natural gas

   $ 477,923    $ 449,621    $ 28,302  

Oil

     226,701      169,114      57,587  

Natural gas liquids

     61,182      48,088      13,094  

Other

     60,335      7,517      52,818  
                      

Total

   $ 826,141    $ 674,340    $ 151,801  
                      

Production volumes from continuing operations

        

Natural gas (MMcf)

     63,500      62,223      1,277  

Oil (MBbl)

     3,807      3,573      234  

Natural gas liquids (MMgal)

     76.9      75.1      1.8  

Production volumes from continuing ops. (MMcfe)

     97,321      94,398      2,923  

Total production volumes (MMcfe)

     97,320      94,420      2,900  

Revenue per unit of production including effects of all derivative instruments

        

Natural gas (Mcf)

   $ 7.53    $ 7.22    $ 0.31  

Oil (barrel)

   $ 59.55    $ 47.34    $ 12.21  

Natural gas liquids (gallon)

   $ 0.80    $ 0.64    $ 0.16  

Other data from continuing operations

        

Lease operating expense (LOE)

        

LOE and other

   $ 147,300    $ 129,519    $ 17,781  

Production taxes

     49,623      55,175      (5,552 )
                      

Total

   $ 196,923    $ 184,694    $ 12,229  
                      

Depreciation, depletion and amortization

   $ 109,333    $ 93,915    $ 15,418  

Capital expenditures

   $ 357,867    $ 377,600    $ (19,733 )

Exploration expenditures

   $ 2,340    $ 3,620    $ (1,280 )

Operating income

   $ 473,905    $ 348,079    $ 125,826  

Natural Gas Distribution

        

Operating revenues

        

Residential

   $ 409,743    $ 430,660    $ (20,917 )

Commercial and industrial

     172,465      190,058      (17,593 )

Transportation

     49,348      43,750      5,598  

Other

     6,667      9,500      (2,833 )
                      

Total

   $ 638,223    $ 673,968    $ (35,745 )
                      

Gas delivery volumes (MMcf)

        

Residential

     22,032      22,190      (158 )

Commercial and industrial

     11,040      11,560      (520 )

Transportation

     51,209      50,163      1,046  
                      

Total

     84,281      83,913      368  
                      

Other data

        

Depreciation and amortization

   $ 46,465    $ 43,507    $ 2,958  

Capital expenditures

   $ 62,806    $ 78,661    $ (15,855 )

Operating income

   $ 76,491    $ 69,430    $ 7,061  

 

16